DataBank Lands $2 Billion Investment for Data Centers

DataBank is adding another building to its 292-acre data center site in Red Oak, a key element in its strategy to build out a massive campus south of Dallas.

The Dallas-based data center operator, headed by CEO Raul Martynek, has filed plans for a $256 million facility in Red Oak, dubbed “DFW10,” the Dallas Morning News reported. Construction on the two-story property, spanning 425,000 square feet along Stainback Road, is slated to begin in February and conclude by July 2028.

JHET Architects is leading the design for DFW10, which has an estimated cost of $602 per square foot.

The project is expected to add substantial capacity to North Texas’ expanding data center market. Phase one of the firm’s Red Oak campus will include up to four buildings, eventually housing eight data centers spanning 3.4 million square feet.

DataBank’s latest development comes on the heels of a major financial boost. The firm recently landed $2 billion in funding from global investors, including a $1.5 billion investment from an Australian fund. Not only does the capital infusion highlight investors’ confidence, it helps cement DataBank as a key player in the region.

As a developing data center hub, Red Oak has also drawn the attention of heavy hitters, like Google and Compass Datacenters.

Google is developing a $600 million facility that will enhance its digital services, including Google Cloud and Maps. Google already has a facility in Midlothian.

Meanwhile, Addison-based Compass Datacenters is expanding its operations in Red Oak with the addition of three data centers costing an estimated $300 million.

The DFW metro now holds the position as North America’s second-largest data center market, boasting 591 megawatts of data center capacity, according to a CBRE.

— Andrew Terrell